Part Il: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?

Part Il: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions ofP400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit orloss shall be distributed under the following terms:• Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 eachrespectively.• 10% return on the original capital contribution.• As managing partner, Brent shall receive bonus equal to 20% of net income after salaries andinterest but before bonus.• The remainder shall be distributed on the basis of original capital ratio.During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080.What is the share of Brent in the partnership net income?A. 108,038.75 C. 105,820B. 106,070 D. 103,195
E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31, 2018, their capital balances were P190,000 for E1, P160,000 forE2, and P120,000 for E3. On January 2, 2019, the partners admitted E4 as a new partner and according to their agreement, E4 will contribute P160,000 in cash to the partnership and also pay E2 for 15% ofhis share. E4 will be given a 20% share in profits while original partners share will be proportionately the same as before. After the admission of E4, the total capital will be P660,000 and E4's capital be P140,000. What is the capital balance of E3 after the admission of E4?
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions of P400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit or loss shall be distributed under the following terms: • Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 each respectively. • 10% return on the original capital contribution. • As managing partner, Brent shall receive bonus equal to 20% of net income after salaries and interest but before bonus. • The remainder shall be distributed on the basis of original capital ratio. During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020 statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080. What is the share of Brent in the partnership net income? A. 108,038.75 B. 106,070 C. 105,820 D. 103,195
The partnership contract for the SDF and MGB Partnership, a generat partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. 1. Profit before salaries for the year ended June 30, 2018 was P315,000. Required: Give the entry to transfer income summary account balance to drawing accounts of the partners.
On December 31, 2020, the Statement of Financial Position of EYBISI Partnership with profit or loss ratio of 6:1:3 of partners Anna, Belle, and Cassie respectively, revealed the following data: Cash - 1,000,000 Other Liabilities - 2,000,000 Receivable from Anna - 500,000 Payable to Belle - 1,000,000 Other non-cash assets - 2,000,000 Payable to Cassie - 100,000 Anna, Capital 700,000 Belle, Capital (650,000) Cassie, Capital 350,000 On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non-cash assets were sold for $1,500,000. Liquidation expenses amounting to $100,000 were incurred. a. What amount of cash was received by Belle at the end of partnership…
The partnership contract for the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. • Profit before salaries for the year ended June 30, 2021 was P315,000. Required: Give the journal entry to transfer income summary account balance to drawing accounts of the partners.
How much of the P112,500 partnership profit for 2020 should be distributed was P112,500, and the average capital account balances for that year were 3. The partnership contract of the Taluban, Ugaban, and Villanueva Partnership provided for the division of net income or losses in the following manner: 1. Bonus of 20% of income before the bonus to Taluban. 2. Interest at 15% on average capital account balance to each partner. 3. Remaining income or loss, equally to each partner. Net income of the Taluban, Ugaban, and Villanueva Partnership for 2020 Taluban, P125,000; Ugaban, P250,000; and Villanueva, P375,000. to Taluban? P33,750 b. P7,500 P48,750 a. С. d. P41,250
On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000
The condensed statement of financial position of Ricablanca, Tac-an and Dimalanta partnership as of March 31, 2019 follows: Assets Cash P 28,000 Non-cash Assets 265,000 Total P293,000 Liabilities P 48,000 Ricablanca, Capital 95,000 Tac-an, Capital 80,000 Dimalanta, Capital 70,000 Total P293,000 Profit and loss ratio is 50:25:25, respectively. The partners voted to dissolve the partnership and liquidate by selling assets in installments. P70,000 was realized on the first cash sale of other non-cash assets which has a book value of P150,000.…
Stop , Look and Listen formed a partnership on January 1, 2019 with capital contributions of P300,000 P500,000 , and P200,000 respectively . For the year ended December 31, 2019, the partnership reported profit of P450,000 Provide an accurate profit distribution if each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided using the ratio 4/3 / 1
A and B formed a partnership on February 28, 2022 by contributing P430,000 and P570,000, respectively. The operations of the partnership for 2022 resulted to a profit of P375,000. Partners A and B agreed to the following allocation scheme: a. Weekly salary allowance of P1,000 is to be given to Partner A; b. 5% interest is to be credited to the partners; c. Bonus of 10% based on profit after salaries and interest to B. d. Residual income is to be allocated equally. How should the profit be allocated to A and B, respectively?